ManU up as takeover rumours back

MANCHESTER United shares soared again as hefty stock market dealings fanned the flames of takeover speculation.

Traders believe two of the earliest stakebuilders - Irish racing duo John Magnier and J P McManus - have returned to the market to lift their stake from 11.4% to 13%.

Cubic Expression, the vehicle of trainer Magnier and punter McManus, bought most of its shares last year at an average cost reckoned to be barely 120p. To be still buying well north of £2 suggests that the Irish duo believe some form of bid action is likely.

The obvious candidate is American football tycoon Malcolm Glazer who has rapidly built a stake of nearly 6%, spending some%33m.

United shares raced a further 17p ahead to 235p with a hefty 6.8m traded as bid bulls cast aside weekend comments from chairman Sir Roy Gardner that noone had approached the club. The shares have more than doubled from 95p last December.

United is now valued at more than £600m. An offer at 250p would push the price to £650m. That requires a hefty belief in the club's long-term potential in new markets such as the US.

ManU could also be a big beneficiary when TV rights over individual games are handed back to clubs. This is possible, but far from certain, within four years.

But some investors are now taking profits. Hedge fund Lansdowne Partners cut its stake from 6.03% to 5.17%